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In 2000 the government introduced a new Gift Aid scheme for taxpayers who give to charity, which is far simpler than the old covenant and Gift Aid schemes which it replaces.
The scheme allows the Church to recover the income or capital gains tax from the Inland Revenue that the individual has already paid on the value of their gift. For each 78p given by Gift Aid, the Church receives 22p from the Inland Revenue (at current tax rates). This makes a large difference to Church funds.
To join the Gift Aid scheme a donor has to complete a Gift Aid declaration, which then means that we can recover tax on any gifts they make to any of our funds for as long as the donor wishes. There is no further paperwork and the declaration never has to be renewed, but the donor can cancel it or stop giving at any time.
Also, unlike a covenant, there is no commitment by the donor to give in the future or, indeed, to give anything at all! The only restriction is that we have to be able to prove to the Inland Revenue that we have received any gifts we claim tax on. This means that we can recover tax on giving by bank transfers, cheques and the envelope scheme, but not on loose cash given in collections.
If you want to support St. Peter’s or to know any more about our finances, please contact the treasurer here.
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The Gift Aid Scheme